Heating Equipment Market Report 2026

The heating equipment market size has grown strongly in recent years. It will grow from $43.44 billion in 2025 to $46.07 billion in 2026 at a compound annual growth rate (CAGR) of 6.1%. The growth in the historic period can be attributed to urbanization and residential construction growth, demand for indoor thermal comfort, industrial process heating needs, availability of fossil fuel-based heaters, growth of commercial buildings.

The heating equipment market size is expected to see strong growth in the next few years. It will grow to $57.88 billion in 2030 at a compound annual growth rate (CAGR) of 5.9%. The growth in the forecast period can be attributed to electrification of heating systems, stricter energy efficiency regulations, adoption of smart thermostats, replacement of aging heating infrastructure, growth in industrial automation. Major trends in the forecast period include shift toward energy-efficient heating solutions, rising adoption of electric heating equipment, integration of smart heating controls, growth of residential heating upgrades, expansion of industrial heating applications.

The growing demand in the construction industry is expected to drive the growth of the heating equipment market going forward. The construction sector includes organizations involved in creating, maintaining, and repairing infrastructure. As the construction industry expands, heating equipment such as heat pumps is increasingly used to provide heating and cooling in medium- and large-scale buildings. For instance, in November 2024, according to the Office for National Statistics (ONS), a UK-based government department, the value of new construction work in Great Britain increased by 4.2% in 2023 to a record £139.02 billion ($152,932 million), driven by growth of £2.05 billion ($2,255 million) in the private sector and £3.57 billion ($3,936 million) in the public sector. Therefore, rising demand in the construction industry is boosting the heating equipment market.

Major companies in the heating equipment market are developing innovative products, such as high-temperature heat pumps, to reach larger customer bases, increase sales, and grow revenue. High-temperature heat pumps are designed to operate efficiently at elevated temperature ranges. For instance, in September 2023, Carrier, a US-based HVAC manufacturer and distributor, launched a new series of high-temperature heat pumps with capacities ranging from 30 kW to 735 kW, using hydrofluoroolefins as the refrigerant. These heat pumps extract heat from ambient air and the ground, as well as capture waste heat from sources including data centers, leisure facilities, hotels, restaurants, process water, flue gases, and sewage systems. The 410 kW AquaForce 61CA air-source heat pump reaches temperatures up to 82°C, while the AquaForce 61CW-Z water-source heat pump achieves 410 kW-735 kW power at temperatures up to 92°C. The AquaForce 61CWD water-source heat pump spans 110 kW-540 kW, reaching 120°C, and the AquaSnap 61CG water-source heat pump covers 30 kW-130 kW, expandable to 390 kW when cascaded.

In August 2023, Smiths Group plc, a UK-based industrial technology company, acquired Heating & Cooling Products for $82 million. This acquisition strengthens Smiths’ capabilities to deliver improved HVAC solutions. Heating & Cooling Products (HCP) is a US-based manufacturer of heating equipment.

Major companies operating in the heating equipment market are Danfoss A/S, United Technologies Corporation, Trane Technologies plc, Lennox International Inc., Robert Bosch GmbH, Johnson Controls, Emerson Electric Co., Honeywell International Inc., Siemens AG, Daikin Industries Ltd., Uponor Corporation, Mitsubishi Electric Corporation, Nortek Inc., Carrier Global Corporation, LG Electronics Inc., Panasonic Holdings Corporation, Samsung Electronics Co. Ltd., Rheem Manufacturing Company, A.O. Smith Corporation, Bradford White Corporation, Navien Inc., Rinnai Corporation, Viessmann Werke GmbH & Co. KG, Fujitsu General Ltd., Gree Electric Appliances Inc. of Zhuhai, Haier Group Corporation, Midea Group Co. Ltd., Nortek Global HVAC LLC, Ruud Manufacturing Company, Goodman Manufacturing Company L.P., York International Corporation.

Europe was the largest region in the heating equipment market in 2025. The regions covered in the heating equipment market report are Asia-Pacific, South East Asia, Western Europe, Eastern Europe, North America, South America, Middle East, Africa. The countries covered in the heating equipment market report are Australia, Brazil, China, France, Germany, India, Indonesia, Japan, Taiwan, Russia, South Korea, UK, USA, Canada, Italy, Spain.

The heating equipment market consists of sales of heat distribution systems, small space heaters, wood and pellet heater. Values in this market are ‘factory gate’ values, that is the value of goods sold by the manufacturers or creators of the goods, whether to other entities (including downstream manufacturers, wholesalers, distributors, and retailers) or directly to end customers. The value of goods in this market includes related services sold by the creators of the goods.

The market value is defined as the revenues that enterprises gain from the sale of goods and/or services within the specified market and geography through sales, grants, or donations in terms of the currency (in USD unless otherwise specified).

The revenues for a specified geography are consumption values that are revenues generated by organizations in the specified geography within the market, irrespective of where they are produced. It does not include revenues from resales along the supply chain, either further along the supply chain or as part of other products.

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